order to glean more precise business needs overtime instead of attempting to

Order to glean more precise business needs overtime

This preview shows page 3 - 5 out of 6 pages.

order to glean more precise business needs overtime (instead of attempting to anticipate long term business needs and take extensive time to build larger scale systems). To speed project cycles and simplify the IT architecture, software application coding reuse was growing in importance. Overtime, the IT DeliveryCreated in support of Information Management learning objectives (mad, Fall 2013)Page 3of 6
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Philips IT Governance and Sourcing (continued)resources expected to custom-build solutions less and less frequently. This while "new development" increased in relation to overall importance. New end-to-end projects were estimated to scale up to cover over 40% of sales (up from around 20% in 2012). Lastly, IT Delivery resources were also available (dedicated) to provide production support as a second-line-of-defense if IT Operations were not able to address a particular problem. IT Operations GroupIT Operations provided for the robust availability and performance of the full range of information systems in ongoing use at Philips. Extensive service level agreements (SLAs) were created and updated for different types of servicing - including Help Desk, device deployment, collaboration tool deployment). The performance criteria in the SLAs were in part driven by corporate standards for service excellence, and in part driven by the service level paid for by the business unit (gold, silver, bronze). To partner IT resources with business units, multidisciplinary teams were formed for all three types of demand and involved c-suite business executives, market sector and functional (core business processes) leadership, and line management. Multiple steering committees were established in alignment with the types of demand. The Strategic IT Steering committee addressed strategic demand efforts with IT Portfolio Management, IT Architecture and IT Delivery. The IT Steering committees addressed tactical demand efforts with IT Architecture and IT Delivery. The operation level did not have a steering committee per se, but multi-disciplinary teams also existed for this type of demand. A key distinction with the new approach was the introduction of business process owners (BPOs). The BPOs were business unit leaders who were charged with overseeing business and IT outcomes for their respective end-to-end process (Idea-to-Market, Market-to-Order, and Order-to-Cash). The results across the enterprise suggest the Accelerate effort produced as expected. Though not all benefits were directly attributable to IT operating model changes, it was commonly viewed at Philips that IT-enablement was critical to the successes of the overall Accelerate effort. Olive described IT as “advancing digital capabilities as our beacon or North Star.”In support of their product-related goals, freeing up resources from other efforts, Philips reinforced its commitment to innovation by increasing health-related research & development from EUR 1.6 billion (7.1% of sales) in 2011 to EUR 1.8 billion (7.3% of total sales) in 2012. In support of customer-related goals, Philipsintensified its focus on addressing local issues and touched the lives of 1.7 billion people in 2012. The
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